Understanding Locks (veNFTs) in Goblins Cash V2

Locking your GOB tokens (or other designated tokens) allows you to participate in protocol governance and earn a share of protocol fees and emissions. These locks are often represented as veNFTs (Vote-Escrowed Non-Fungible Tokens).

Key Aspects of Locks:

• Voting Power: The longer you lock your tokens, and the greater the amount, the more voting power (e.g., veGOB) you receive.
• Rewards: This voting power is then used to vote on which liquidity pools receive token emissions. As a voter, you typically earn a share of the transaction fees from the pools you vote for, plus a portion of the emissions.
• Boosties: Some systems allow locks to boost the rewards earned from liquidity provision.

The APR for rewards earned via locks and voting is influenced by the total rewards distributed and the total voting power participating.

Understanding Liquidity Pools in Goblins Cash V2

The core functionality of Goblins Cash V2 is to allow users to exchange tokens in a secure way, with low fees and low slippage.

Slippage is the difference between the current market price of a token and the price at which the actual exchange/swap is executed…

To provide access to the best rates on the market, Goblins Cash V2 utilizes different types of tokens:

• Correlated tokens: Assets expected to trade closely in price (e.g., stablecoins like $USDC, $DAI).
• Uncorrelated tokens: Assets whose prices are not expected to move closely (e.g., $GOB, $BTC).

Goblins Cash V2 offers different liquidity pool types… primarily Stable Pools and Volatile Pools…

The protocol’s router evaluates pool types… uses time-weighted average prices (TWAPs)…

The deeper the liquidity… the smaller the slippage…

Pool Types:

Stable Pools: Designed for tokens with little to no volatility relative to each other. Common formula: x³y + y³x ≥ k

Volatile Pools: Designed for tokens with higher price volatility. Common formula: x × y ≥ k

Concentrated Liquidity (CL) Pools: Allow LPs to deposit assets within a specific price range… using “ticks”…

• Tick Spacing: Minimum price movement between ranges. Examples: Stable tokens (0.01%-0.5%), Volatile tokens (2%+).
• CL Pool Symbols: Often indicate nature, e.g., CL1-wstETH/WETH.
• CL Pool Fees: Can be adjusted flexibly.

Understanding Rewards & APR Calculation in Goblins Cash V2

Providing liquidity… can earn rewards from transaction fees and potential token incentives (emissions).

Calculating APRs (Annual Percentage Rate):

For Basic Pools: APR generally based on rewards earned / total value of staked liquidity.

For Concentrated Liquidity (CL) Pools: APR calculation is nuanced, considering rewards for liquidity in the active trading price range.